WL Homes trustee seeks approval of $1.2 million home defect settlement

By Caroline Salls

Pittsburgh, Jan. 12 - WL Homes, LLC's Chapter 7 trustee George L. Miller requested court approval of a $1.2 million home defect claim settlement, according to a Jan. 12 filing with the U.S. Bankruptcy Court for the District of Delaware.

The claimants filed a lawsuit against the company and various subcontractors to recover damages for alleged defects in the claimants' homes in the Paloma development in Las Vegas.

Under the settlement, the settling subcontractors will fund $1.15 million of the $1.2 million payment, and WL Homes' insurance carriers will fund $53,817.

In addition, the subcontractors' insurers will pay $60,000 for WL Homes' estates under the settlement.

WL Homes, an Irvine, Calif.-based homebuilder, filed for bankruptcy on Feb. 19, 2009. Its Chapter 11 case number is 09-10571.

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